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May 2021, 03
B2B Segmentation
Feyza Uzun
| Blog
B2B Segmentation

What is B2B Segmentation?

B2B segmentation is a marketing method that allows dividing the market into parts according to certain criteria and creating marketing strategies suitable for the demands and movements of the audience. This method is so powerful when applied correctly that it allows marketers to draw a picture of their customer base, group them according to similarities, and develop marketing strategies suitable for each segment they target. These strategies are so customizable that the rate of return can be very high in some cases.

It is possible to talk about many segmentation methods that are accepted in the marketing world today. For this reason, we would like to talk about 5 different methods that you can use in the B2B segmentation process.

Segmenting Customers by Firmography

Marketers engaged in B2B segmentation use company information in the same way that B2C marketers use demographic data. This is a method of segmenting customers based on their common attributes. Firmographic segmentation groups customers based on factors such as business size (employee or annual income), company location, industry, and even other technologies used by targeted companies.

On the downside, firm charts have the same disadvantages as demographics for B2C marketing. Just because a customer is a 40-year-old woman doesn't mean they want to buy dish soap, and a company's 1,500 employees and annual revenue of over $5 million doesn't mean they need a cloud service provider. According to the company chart, the conclusions you can draw from the segments are limited.

Segment Customers by Tiering

Customer tiering is a segmentation method based on how well the customer matches your business goals. For example, you can use the customer tier to segment customers based on how much revenue you expect to bring to your business over the course of your relationship, or how closely this customer matches your own sales and marketing strategies.

Segment Customers According to Needs

Need-based customer segmentation groups your customers based on what they're looking for in a product. This model segments customers according to their needs. Of all segmentation methods, this offers the marketer the most accurate way to target customer segments. It is a highly scalable method as the marketer can determine as many segments based on needs as preferred.

Needs-based segmentation often stems from what potentially drives your business in the first place. If you're a cloud service provider and a site visitor comes to you via a blog post about file sharing, you might determine that that prospect needs a solution that simplifies file sharing. As a result, you can target this possibility with additional content surrounding this concept to help move the user further in your sales funnel.

Segment Customers Based on Customer Sophistication

As the name suggests, segmentation based on customer complexity means dividing your audience based on product or industry intelligence. Like the other methods included in this post, segmentation by customer sophistication provides the opportunity to tailor your campaigns to a potential customer's specific needs. However, instead of separating customers based on their needs, firmographic information, or potential value for your business, customer sophistication looks only at the target company's awareness of the problem your product solves.

Segmenting Customers According to Behavior

For demand-driven marketers, behavioral segmentation acts as a powerful complement to tiered segmentation to maximize the value of your existing customer base.

Behavioral segmentation looks at the ways your current customers interact with your product or solution to identify two critical things:

  1. Could this customer benefit from expanding their existing solution?

  2. Is this customer at risk of breaking our solution?

We tried to compile for you 5 prominent and accepted segmentation methods that you will need to take your B2B business model one step further. Considering that the success of B2B Segmentation is directly proportional to the variety and depth of the data you have, it is clear that Trizbi b2b e-commerce erp software is the biggest helper for you. Thanks to its modules that can offer a wide variety of data effortlessly, it largely or completely meets your needs in segmentation studies.